Investment Lawyer

Broker John Neely Subject to Regulatory Sanctions Over Unauthorized Trading

May 7, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor John Neely (Neely), currently employed by St. Bernard Financial Services, Inc. (St. Bernard Financial) has been subject to at least one customer complaint, three regulatory actions, and one employment termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), Neely has been accused by FINRA of engaging in unauthorized trading in client accounts.

In November 2018 FINRA settled a regulatory action against Neely stating that Neely consented to sanctions and findings that he exercised discretion in effecting hundreds of transactions in two customers’ brokerage accounts without obtaining written approval from the customers to do so. FINRA also found that the customers verbally authorized Neely to exercise discretion in their accounts but that Neely never sought his firm’s approval to service either customer’s accounts on a discretionary basis. In addition, according to FINRA Neely’s firm prohibited the use of discretion in brokerage accounts altogether.

In September 2018 Neely’s then employer Berthel, Fisher & Company Financial Services, Inc. (Berthel Fisher) terminated Neely stating that he failed to respond to an inquiry from the compliance department.

Ameriprise Advisor Stan Leavitt Has An Options Trading Complaint

April 30, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Stan Leavitt (Leavitt), currently employed by Ameriprise Financial Services, Inc. (Ameriprise) has been subject to at least two customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Leavitt’s customer complaints allege that Leavitt made unsuitable recommendations and made misrepresentations.

In October 2018 a customer filed a complaint alleging that Leavitt violated the securities laws including misrepresentations and unsuitable investments from April 2015 until June 2017 in options causing $550,000 in damages. The claim is currently pending.

In July 2018 a customer filed a complaint alleging that Leavitt violated the securities laws including misrepresentations from December 2015 until June 2017 in a variable annuity product causing $31,015 in damages. The claim settled.

National Securities Broker Robert Abramowitz Subject to Customer Complaints

January 31, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Robert Abramowitz (Abramowitz), currently employed by National Securities Corporation (National Securities) has been subject to at least three customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Abramowitz’s customer complaints allege that Abramowitz made unsuitable recommendations in a variety of investments including equities including energy related stocks.

In July 2018 a customer complained that Abramowitz violated the securities laws by engaging in unsuitable investments, breach of fiduciary duty, and negligence. The customer alleges $100,000 in damages and the claim is currently pending.

In March 2018 a customer complained that Abramowitz violated the securities laws by engaging in conduct alleges investments were misrepresented to her and were unsuitable based on her investment objectives. The customer also alleged that her investment objectives and risk tolerance were incorrectly stated on new account paperwork. The customer alleges $149,236 in damages. The claim was settled for $75,000.

Raymond James Advisor Maria Hendershott Subject to Several Complaint Disclosures

December 21, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Maria Hendershott (Hendershott), currently employed by Raymond James & Associates, Inc. (Raymond James) has been subject to four customer complaints during her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Hendershott concern allegations of unsuitable investments and allegations of overconcentration.

In November 2018 a customer complained that Hendershott recommended investments that violated the securities laws including breach of contract, violation of provisions of The Texas State Securities Statutes, Ann. Tx Civil Statutes Art. 581-33, violation of The Texas Deceptive Trade Practices Act Bc. Code Ann. § 17.46 and Tex Bc. Code Ann. § 17.50, breach of fiduciary duty that took place from 01/15/2015 until 09/12/2016. The customer alleges $500,000 in damages and the claim is currently pending.

In October 2017 a customer complained that Hendershott recommended investments that violated the securities laws including during 06/30/2014 until 07/31/2015 claiming gross mismanagement of accounts, investor abuse, churning, breach of fiduciary duty, negligence, and violation of industry rules. The customer claimed $100,000 in damages. The case settled for $75,000.

Did A Aegis Capital Broker Recommend Biotech Stock Akers Biosciences?

November 27, 2018 | by Staff Attorney

Biotech company Akers Bioscience (AKER) went public in 2014 using Aegis Financial as its investment underwriter. The company’s IPO price was $5 but has subsequently fallen to only $.25. According to SeekingAlpha not only did Aegis underwrite the security but it also promoted it to investors and potentially the firm’s own brokerage clients buy maintaining a buy rating on the stock. Akers was given an $11.00 price target in June 2014.

The company has also been subject to a recent class action complaint. The complaint alleges that the company made materially false and misleading statements regarding the Akers’ business, operational and compliance policies.

According to the company’s website, Akers Biosciences, Inc. (aka Akers Bio) was founded in 1989, with the objective of developing proprietary, in vitro diagnostic technologies that accelerate the rate at which clinicians, and in some cases consumers, can obtain health information. The tests are designed to provide the same level of accuracy as traditional laboratory testing methods but at a fraction of the cost and turn-around time.

First Standard Financial Advisor Roy Failla Subject to Multiple Allegations of Excessive Trading

October 25, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Roy Failla (Failla) has been subject to three customer complaints. Failla is currently employed by First Standard Financial Company LLC (First Standard Financial). Many of the customer complaints against Failla concern allegations of high frequency trading activity also referred to as excessive trading, churning, unauthorized trading, and unsuitable investments.

In May 2018 a customer filed a complaint alleging unsuitable and unauthorized trading. The claim alleges $1,500,000 in damages and is currently pending.

In May 2010 a customer filed a complaint alleging churning, unsuitable trades, and misrepresentations claiming $417,000 in damages. The complaint was settled for $40,000.

In February 2010 a client filed a complaint alleging unauthorized trading, fraud, breach of fiduciary duty, and excessive trading and claimed $299,817 in damages. The claim was settled for $75,000.

Mitchell Walk Subject to Multiple Customer Complaints for Unsuitable Investments

June 28, 2018 | by Staff Attorney

Securities attorneys from Gana Weinstein LLP are investigating Kestra Investment Services, LLC (Kestra Investment Services) broker Mitchell Walk (Walk).

According to BrokerCheck records, Walk has been subject to 5 customer complaints, 2 of which are still pending. The majority of these complaints regard unsuitable investment recommendations.

In August 2017, a customer alleged that Walk made unsuitable investment recommendations to the customer and that Kestra Investment Services failed to properly supervise this activity. The client has requested $72,000 in damages. This dispute is currently still pending.

Patrick McNamara Subject to Multiple Customer Complaints for Unsuitable Investments

June 18, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) broker Patrick McNamara (McNamara). According to BrokerCheck records, McNamara has been subject to seven customer complaints. The majority of these complaints concern unsuitable investment recommendations and misrepresentation of material facts.

In August 2017, a customer alleged that from September 2011 to July 2017, McNamara misrepresented the nature of investments to customers. The case was settled at $16,063.98.

In August 2015, a customer alleged that from July 2014 to January 2015, McNamara provided unsuitable investment recommendations. The case was settled at $8,438.00.

Janney Montgomery Scott Advisor Jack Griffith Subject to Multiple Complaints Over Unsuitable Investments

June 12, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Jack Griffith (Griffith), currently employed by Janney Montgomery Scott LLC (Janney Scott) has been subject to five customer complaints and one lien. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Griffith’s customer complaints allege that Griffith made unsuitable recommendations in equity securities.

In January 2018 a customer made allegations unsuitable recommendations for the client’s account, overconcentration, and breached his fiduciary duty. The claim alleged $200,000 in damages and is currently pending.

Also in January 2018 another customer made allegations of unsuitable recommendations for the client’s account. The claim alleged $150,000 in damages and is currently pending.

Gana LLP Investigates LJM Preservation and Growth Fund

February 9, 2018 | by Staff Attorney

Gana Weinstein LLP is investigating the LJM Preservation and Growth Fund (Ticker Symbols LJMAZ, LJMCX, LIMIX). The LJM Funds relied extensively on a strategy that is designed to profit from calm markets. The LJM Preservation and Growth Funds collapsed and lost more than 80% of its value as a result of last week’s market volatility. The combonation of LJMAZ, LJMCX and LIMIX at one point collectively held over $800 million in assets CNC reached out to Chicago-based LJM Partners, Inc. – the funds managers, and no comment was made.

According to its annual report to shareholders, LJM explained that it options “to deliver solid returns while maintaining risk parameters.” LJM also suggested that it used techniques to mitigate losses in extreme market conditions. The fund was designed to take advantage of the spread between realized and implied volatility. According to CNBC, “LJM Preservation and Growth Fund had been run by Anthony Caine, a veteran of the 1990s technology boom who later founded LJM, and Anish Parvataneni, a former trader for well-known investor Ken Griffin’s Citadel.”

According to reports, LJM was infused with almost $400 million in new capital in 2017 alone.